GDP growth to improve this fiscal: FM Arun Jaitley

Written by PTI | New Delhi | Updated: Jul 18 2014, 20:29pm hrs
Arun JaitleyThe country has been clocking a sub-5 per cent growth for the past two financial years, mainly on account of slowdown in investments. Reuters
India's economic growth is expected to improve during the current fiscal from 4.7 per cent in 2013-14, helped by a revival in industrial growth, improved fiscal health and external economic situation, Parliament was informed today.

The Economic Survey 2013-14 tabled in the Lok Sabha early this month had projected the country to grow between 5.4-5.9 per cent in the current fiscal.

"The growth rate of the country is expected to increase during 2014-15, compared to 2013-14," Finance Minister Arun Jaitley said in a written reply to the Lok Sabha.

He said factors such as revival of industrial growth, improved external economic situation characterised by a stable current account, benign outlook on oil prices, improved fiscal health and modest revival in global economy can be expected to contribute to the GDP growth in 2014-15.

The country has been clocking a sub-5 per cent growth for the past two financial years, mainly on account of slowdown in investments.

In a separate reply to another question, the Minister said slowdown in investment has happened due to a combination of factors such as weak business sentiment, global slowdown, lower export demand, infrastructure bottlenecks and rise in interest costs owing to elevated inflation.

"The government continuously monitors macro-indicators including sectoral investment pattern in the economy," he said, adding the investment rate declined from 35.5 per cent of GDP in 2011-12 to 34.8 per cent in 2012-13.